The Dubai Financial Services Authority (DFSA) has published a comprehensive explainer on the Regulation of Crypto Tokens.

The DFSA’s Crypto Token regime provides a clear framework for businesses operating in the Dubai International Financial Centre (DIFC). It is designed to foster innovation while maintaining a robust regulatory approach to ensure financial stability and consumer protection.

In this explainer, the DFSA delves into the intricate details of how Crypto Tokens are classified, recognised, and governed under its regulatory regime.

The explainer covers key topics such as:

• What are Crypto Tokens? Gain a better understanding of the cryptographically secured digital representations that are reshaping the financial landscape.
• Recognised vs Unrecognised Tokens: Discover the DFSA’s Token Recognition Criteria and learn what it takes for a Token to be used in the DIFC.
• Prohibited Tokens: Learn which Tokens, including Privacy Tokens and Algorithmic Tokens, are explicitly prohibited in the DIFC.
• How to Get a Crypto Token Recognised by the DFSA: A step-by-step guide for businesses aiming to get their Crypto Tokens recognised.
• Frequently Asked Questions: Covering everything from licence variation requirements to the DFSA’s stance on stablecoins.

It also covers what requirements relating to anti-money laundering, consumer protection, and technology governance need to be complied with.

With this explainer, firms will gain a clear roadmap to navigate the growing world of crypto in the DIFC, ensuring their operations comply with international standards.

Read the full explainer and get all the details you need to stay compliant with the DFSA's Crypto regulatory regime.